Japan Stainless Export Price Rebounds to Asia

Japanese stainless steel export price rebounded to over US$ 2,200 per tonne for SUS 304 shipped to Asia. The price surged by US$ 200-300 from the recent bottom and exceeded US$ 2,000 in April. Nippon Steel & Sumikin Stainless had suspended offer acceptance until last week but restarted negotiations this week.

The export price rebounded when the inventory of nickel series cold rolled products decreased, nickel price rose, and Chinese and Taiwanese stainless makers eased output reductions. A large dealer source said nickel inventory held by London Metal Exchange decreased due to rising makers’ output. Nickel price is increasing and actual demand is recovering. Chinese makers are likely to increase the output for building materials.

A stainless steel maker source said the users such as plateware makers are slightly increasing production with an expectation material price might become higher. Meanwhile, the inventory may expand if Chinese makers increase the output.

It is unclear whether the export price impacts domestic stainless market price. A large dealer source said the export price might decrease again when the demand hasn’t recovered and nickel price may drop.